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FINANCE MINISTER: RATIO OF ARMENIA'S DEBT TO GDP PLANNED TO BE 46.2% IN 2013
/ARKA/
July 9, 2010
YEREVAN
The ratio of Armenia's debt to GDP is planned to be 48.5% in 2011,
48.1% in 2012 and 46.2% in 2013, Armenian Finance Minister Tigran
Davtyan said Thursday at a regular governmental meeting.
"Despite the absolute indicator of the state debt will grow to AMD
1.7 trillion, 1.8 trillion and 1.9 trillion accordingly, the debt/GDP
ratio is planned to be lowered," he said.
At its routine meeting, the government approved the 2011-2013 strategic
program of regulating the state debt.
Davtyan, presenting key provisions of the strategy to the cabinet
ministers, said that the government budget deficit will mainly be
financed from the loans taken from domestic and outside sources.
The minister said that the budget deficit in 2010, 2012 and 2013
would be 4.9%, 4.3% and 4% accordingly.
"Home borrowings will amount to AMD 28.4 billion, 28.4 billion and
33.4 billion in 2011, 2012 and 2013, and foreign borrowings will
total AMD 60 billion, 131 billion and 115 billion."
Davtyan pointed out some important provisions in the strategy.
In particular, it is proposed to enlarge the share of the home debt
in Armenia's state debt.
"Taking into account the absence of monetary risks, we can say that
this will make the state debt more stable and controllable," the
minister said.
It is also proposed to enlarge the amount of 3-to-20-year government
bonds.
Priority will be given to borrowings being attracted at the fixed
interest rates and freely converted currencies.
Davtyan said that the loans taken recently at floating interests
carry some risks.
He thinks that it would be better to borrow money at fixed interest
rates with at least 5% grace period, taking into account that it will
be very important in coming years to ease debt burden. Armenia's
foreign debt reached $2980.9 million or AMD 1193.86 billion by
late March.
The foreign debt has grown 66.6% or by $1192.1 million since March
2009.
From: A. Papazian
/ARKA/
July 9, 2010
YEREVAN
The ratio of Armenia's debt to GDP is planned to be 48.5% in 2011,
48.1% in 2012 and 46.2% in 2013, Armenian Finance Minister Tigran
Davtyan said Thursday at a regular governmental meeting.
"Despite the absolute indicator of the state debt will grow to AMD
1.7 trillion, 1.8 trillion and 1.9 trillion accordingly, the debt/GDP
ratio is planned to be lowered," he said.
At its routine meeting, the government approved the 2011-2013 strategic
program of regulating the state debt.
Davtyan, presenting key provisions of the strategy to the cabinet
ministers, said that the government budget deficit will mainly be
financed from the loans taken from domestic and outside sources.
The minister said that the budget deficit in 2010, 2012 and 2013
would be 4.9%, 4.3% and 4% accordingly.
"Home borrowings will amount to AMD 28.4 billion, 28.4 billion and
33.4 billion in 2011, 2012 and 2013, and foreign borrowings will
total AMD 60 billion, 131 billion and 115 billion."
Davtyan pointed out some important provisions in the strategy.
In particular, it is proposed to enlarge the share of the home debt
in Armenia's state debt.
"Taking into account the absence of monetary risks, we can say that
this will make the state debt more stable and controllable," the
minister said.
It is also proposed to enlarge the amount of 3-to-20-year government
bonds.
Priority will be given to borrowings being attracted at the fixed
interest rates and freely converted currencies.
Davtyan said that the loans taken recently at floating interests
carry some risks.
He thinks that it would be better to borrow money at fixed interest
rates with at least 5% grace period, taking into account that it will
be very important in coming years to ease debt burden. Armenia's
foreign debt reached $2980.9 million or AMD 1193.86 billion by
late March.
The foreign debt has grown 66.6% or by $1192.1 million since March
2009.
From: A. Papazian